Mines and Minerals Amendment Bill 2025 Passed in Rajya Sabha

Strategic Insights -

The Mines and Minerals (Development and Regulation) Amendment Bill, 2025, aimed at promoting the exploration, mining, and processing of critical and rare minerals, has been passed by the Rajya Sabha. The Bill intends to liberalize the overall mining regulatory framework to attract investments. The Bill received approval from both Houses of Parliament after the Lok Sabha had already passed it earlier.

Key Takeaways:

  • The Bill aims to promote the exploration, mining, and processing of critical and rare minerals, with a focus on liberalizing the overall mining regulatory framework to attract investments.
  • Union Minister for Mines G Kishan Reddy introduced the Bill, outlining its key objectives, which include restoring public trust in the mining sector and leading to economic benefits and significant transformation.
  • The Bill is inspired by the goal of harnessing the potential of the mining sector, which is a source of prosperity and employment.
  • The central government works for the nation's development, not just revenue collection, and all proceeds from mineral premiums, royalties, and other levies go to the states.
  • India's coal production has reached one billion tonnes annually for the first time, imports have declined, and foreign exchange has been saved. Thermal power plants now have a 27-day coal stock, up from the previous average of 10-17 days.
  • India is currently 100% dependent on foreign countries for critical minerals and has launched a Rs 32,000 crore Critical Minerals Mission and established a new PSU called KABIL (Khanij Bidesh India Ltd) to reduce this dependency.
  • KABIL, a joint venture of National Aluminium Company, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Limited, has secured five rare mineral blocks in Argentina and has obtained exploration rights over 9,000 sq km for critical minerals in Zambia, from which India will source lithium.
  • Reddy informed the House that R&D efforts have been launched, and 13 offshore blocks have been identified for auction, and a dedicated division within the Geological Survey of India (GSI) has been created for critical mineral exploration.
  • The government has finalised projects to reclaim 143 closed coal mines and is preparing to have the Rs 2 lakh crore spent from the District Mineral Fund audited by the Comptroller and Auditor General (CAG).
  • Various members praised the Bill and offered inputs during the discussion, including suggestions to encourage green mining and recycling of old solar panels, ease environmental regulations, and increase mineral royalties for Odisha.

Statistics:

  • Coal production has reached one billion tonnes annually for the first time in India.
  • Imports have declined, and foreign exchange has been saved.
  • Thermal power plants now have a 27-day coal stock, up from the previous average of 10-17 days.
  • India is currently 100% dependent on foreign countries for critical minerals.
  • The government has launched a Rs 32,000 crore Critical Minerals Mission.
  • KABIL has secured five rare mineral blocks in Argentina and has obtained exploration rights over 9,000 sq km for critical minerals in Zambia.
  • The government has finalised projects to reclaim 143 closed coal mines.
  • The Comptroller and Auditor General (CAG) will audit the Rs 2 lakh crore spent from the District Mineral Fund.

Sources:

  • United News of India (UNI) - Aug. 19
  • HT Digital Content Services with permission from United News of India - Copyright (c) United News of India
  • SyndiGate Media Inc. ( )